Workers' Compensation
Workers" Compensation Information
MEGA offers workers’ compensation insurance
to all public entities in Massachusetts. Our program provides first dollar
coverage for all losses. Premium calculation is based upon the
state-established rates per class code, the member’s individual experience
modification factor, and MEGA’s rate deviation, which can be as high as 30%
from the state rates. MEGA offers one rate deviation based upon the member’s
experience modification factor. In addition, MEGA also offers members a
longevity deviation to recognize tenure in the group, regardless of loss
experience. These deviations are offered at policy inception and represent
significant up-front savings to members. MEGA does not participate in the
Department of Industrial Accidents assessment program, so no assessments are
charged to group members. MEGA conducts an annual payroll audit at the close
of the fund year to reconcile estimated payroll and corresponding premium to
actual year-end numbers.
MEGA also maintains a dividend program to
reward members for positive experience after the close of a fund year. In the
past five years, MEGA has returned approximately $5 million to members under
this program. State regulation precludes a dividend distribution until
twenty-four months after the close of a fund year, so new members must wait
this period before receiving a potential dividend. The board of directors
determines the dividend distribution annually.
When claims are incurred, the member need
only report the loss to MEGA via facsimile or via our internet claim reporting
system. The employer also is mandated by statute to report all lost time or
indemnity claims involving five or more days of disability to the Department
of Industrial Accidents. Thereafter, MEGA assumes responsibility for
adjudicating the claim and paying all related benefits. The member employer
is afforded input into the decision and strategy process.
The Department of Industrial
Accidents website http://www.mass.gov/dia contains, among other items, an
Employer Handbook
for additional reference regarding who must have workers’ compensation
insurance and how to file claim related information.
